1999 Commercial HighlightsA small sampling of some United States-based companies and their direct and indirect commercial relationships with non-United States-based companies that have commercial relationships with entities within the Republic of Cuba; and United States-based companies and their direct and indirect commercial relationships with entities within the Republic of Cuba; and other commercial relationships and commercially-relevent matters. OFAC, BXA, AND DEPARTMENT OF STATE STAFF TO HAVE BOOTH AT U.S. HEALTHCARE EXHIBITION- Representatives of the United States Department of State, the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury, and Bureau of Export Administration (BXA) of the United States Department of Commerce will share a nine square meter booth at the 25 January 2000 to 29 January 2000 U.S. Healthcare Exhibition in the city of Havana. Mr. Peter W. Nathan, President of Westport, Connecticut-based PWN Exhibicon International LLC, the organizer of the U.S. Healthcare Exhibition, responded positively to the suggestion made by the United States Department of State [see attached letter]. As previously announced, The Honorable Vicki Huddleston, Chief of the United States Interests Section in the city of Havana, Republic of Cuba, will host a reception and briefing on 24 January 2000 at her official residence for exhibitors participating in the U.S. Healthcare Exhibition. More than seventy-five United States-based companies have thus far reserved exhibition space at the U.S. Healthcare Exhibition. The general categories for exhibitors are: Medical equipment, medical instrument, medical supply, medicine, medicated products, pharmaceutical, medical devices, hospital equipment, laboratory equipment, ambulances, physical therapy equipment, medivac equipment, training programs, training materials, and informational materials (including videos, books, etc.). NOTE: Healthcare products used in biotechnological research/production are not eligible. Decatur, Illinois-based Archer Daniels Midland Company (1998 revenues exceeded US$14 billion) is the exclusive vitamin/food sponsor of the U.S. Healthcare Exhibition. Archer Daniels Midland Company (ADM) is the world’s largest producer of natural vitamin E and also produces vitamin C, lecithin (a source of choline which plays an important role in the function of the brain’s neurotransmitters), Isoflavones (a natural component of soybeans), phytosterols, and many other products. Other categories of sponsorships include: Pharmaceutical, Medical Equipment, Travel, Air Carrier, and Air Freight. The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., has licensed PWN Exhibicon International LLC to hold an exhibition within the Republic of Cuba to promote the sale of United States-produced healthcare products. Additional information may be obtained on the Internet at http://www.pwnexhibicon.com, by telephone (203) 222-8660, or by facsimile (203) 222-8335. GROUPE BULL ATM’S TO ACCEPT MASTERCARD- Automated Teller Machines (ATM’s) located within the Republic of Cuba are expected to begin accepting Mastercard (the brand being owned by New York City, New York-based Mastercard International) credit cards not issued by United States-based financial institutions. ATM machines within the Republic of Cuba are manufactured by Louveriennes, France-based Groupe Bull and reportedly use software purchased from Canada-based companies. The first ATM was installed in the city of Havana, Republic of Cuba, in 1997 at the office of the Ministry of Transportation of the Republic of Cuba to distribute salaries, and to provide other Peso-denominated services for Republic of Cuba national employees. Convertible Pesos (equal to the U.S. Dollar) can be withdrawn from the majority of the thirty ATM’s located in Havana; from the one ATM located at the resort area of Varadero (140 kilometers east of Havana); from the one ATM located in the city of Matanzas (a few kilometers from Varadero); and from the majority of the six ATM’s located in Moa, Holguin Province (800 kilometers east of Havana). Reportedly, ten of the ATM’s in Havana, and some of the ATM’s located at Moa, are being used exclusively by Republic of Cuba nationals to obtain salaries, social security benefits, and other Peso-denominated services. Visa credit cards (the brand being owned by New York City, New York-based Visa International), Mastercard credit cards, TransCard (issued by Canada-based Transcard, primarily used for family remittances), BFI Card (issued by Republic of Cuba government-operated Banco Financiero Internacional) and the CabalCard credit card (issued by Argentina-based Cabal S.A.) are among the credit cards currently accepted at more than 2,500 locations (airlines, hotels, restaurants, retail stores, vehicle rental, fuel services, etc.) within the Republic of Cuba. Mexico City, Mexico-based Banco Nacional de Mexico S.A. (Banamex), the largest commercial bank in Mexico, has a joint venture with Republic of Cuba government-operated Fincimex S.A. to process receivables and to issue consumer credit and charge cards. The Central Bank of the Republic of Cuba is reportedly negotiating a similar agreement with an unnamed Spain-based financial institution. Fincimex S.A. is currently the exclusive processor of receivables for retail credit card and retail charge card transactions within the Republic of Cuba. The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., permits individuals not subject to United States law to use Visa credit cards and MasterCard credit cards for transactions within the Republic of Cuba provided that the Visa credit cards and MasterCard credit cards are not issued by United States-based financial institutions. New York City, New York-based Citibank N.A., a subsidiary of New York City, New York-based Citigroup Inc. (1998 assets exceeding US$500 billion) owns the 250-branch Monterrey, Mexico-based Banco Confia. Individuals not subject to United States law are permitted to use Visa credit cards and Mastercard credit cards issued by Banco Confia for transactions within the Republic of Cuba. Banco Confia is not a United States-based financial institution. Banco Confia is 100% owned by a United States-based financial institution. Citibank S.A. also owns the 104-branch Buenos Aires, Argentina-based Banco Mayo Cooperativo, which issues Visa credit cards and Mastercard credit cards. U.S. HEALTHCARE
EXHIBITORS PERMITTED TO DISTRIBUTE SAMPLES- The Bureau of Export Administration
(BXA) of the United States Department of Commerce in Washington, D.C.,
has authorized participants in the U.S. Healthcare Exhibition (25 January
2000 to 29 January 2000) in the city of Havana to distribute samples of
their products to attendees. The definition of “attendees” as provided
by the BXA includes: officials of the government of the Republic of Cuba,
members of non-governmental organizations (e.g., charitable or religious
organizations) and other individuals not affiliated with the government
of the Republic of Cuba, and Republic of Cuba nationals. [See attached
photocopy of 13 December 1999 letter from the BXA]. Exhibitors will
require a license (complete form BXA-748P) from the BXA for such distribution.
The BXA will authorize the distribution of the following “free of charge”
and “in usual and customary quantities”:
CHASE MANHATTAN BANK SUBSIDIARY IS NOMINEE FOR WESTERN MINING CORPORATION SHARES- A subsidiary of Sydney, Australia-based Chase Manhattan Bank Australia (CMBAL), Sydney, Australia-based Chase Manhattan Nominees Ltd. (CMN), an indirect wholly-owned subsidiary of New York City, New York-based Chase Manhattan Corporation (1998 assets exceeding US$350 billion), has served since 1988 as the nominee (custodian) for outstanding shares of Melbourne, Australia-based Western Mining Corporation (WMC). The current holdings by CMN in WMC is 7.66%, valued approximately US$200 million. In 1997, Republic of Cuba government-operated Caribbean Nickel S.A. (under the auspice of the Ministry of Basic Industry of the Republic of Cuba) signed a joint venture agreement valued at US$650 million with Melbourne, Australia-based Westminer Holdings Ltd., a subsidiary of WMC, to construct a nickel plus cobalt plant and refinery in the Pinares de Mayari area of Holguin Province. The venture, in which WMC holds 65% of the shares, has yet to begin construction due to previously low nickel prices and a lack of financing. The total value of the assets of CMN is reported as approximately US$70 billion. Individual entities (corporations) using the services of CMN normally have a minimum asset value of US$100 million placed with CMN. WMC has American Depository Receipts (ADR’s) listed on the New York City, New York-based New York Stock Exchange (NYSE). According, to CMBAL, individuals subject to United States law may use the services of CMN. The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C. authorizes companies subject to United States law to have a non-controlling investments in third country companies that have commercial activities within the Republic of Cuba provided that the investments do not result in control in fact of the third country company and provided that a majority of the revenues of the third country company are not produced from commercial activities within the Republic of Cuba. [OFAC 4 March 1994]. GRAND HYATT HONG KONG IS LOCATION OF PACIFIC CIGAR COMPANY EVENT- On 25 November 1999, Hong Kong, People’s Republic of China-based Grand Hyatt Hong Kong was the location of a gathering (cigar fashion show) hosted by Hong Kong, People’s Republic of China-based Pacific Cigar Company, the exclusive distributor of Republic of Cuba-produced cigars within countries on the Asian continent. The Grand Hyatt Hong Kong is managed by Chicago, Illinois-based Hyatt Hotels & Resorts (1998 revenues exceeded US$3 billion). The Grand Hyatt Hong Kong is owned by Hong Kong, People’s Republic of China-based New World Development Limited. Hyatt Hotels & Resorts has been permitted by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., to own and to manage the Park Hyatt Toronto, a US$75 million property located in Toronto, Canada, that had a Casa del Habano retail cigar store on the premises (with a multi-year lease) when Hyatt Hotels & Resorts first evaluated the property for purchase. Republic of Cuba government-operated Habanos S.A., the exclusive distributor of Republic of Cuba-produced cigars, owns the Casa del Habano retail cigar store franchise, of which there are approximately 69 located throughout the world. Habanos S.A. owns 100% of some of the Casa del Habano retail cigar stores (mainly those located within the Republic of Cuba), has an equity interest in others, and in others has no equity interest, only receiving a franchise fee. In April 1998, the 798-room Sheraton Hong Kong Hotel & Towers opened a Casa del Habano retail cigar store in the property. White Plains, New York-based Starwood Hotels & Resorts Worldwide, Inc. (1998 revenues exceeded US$4 billion), owns Sheraton, Westin, Four Points, St. Regis/The Luxury Collection, W Hotels, and Ciga. The Sheraton Hong Kong Hotel & Towers is “partially-owned” Sheraton. Bala Cynwyd, Pennsylvania-based Tinder Box International, Ltd., which owns the Tinder Box brand name, has a franchisee located in Winnipeg, Canada, which sells Republic of Cuba-produced tobacco products. According to Tinder Box International, Ltd., approximately 75% of the tobacco products sold in the Winnipeg, Canada, retail store are of Republic of Cuba origin. Tinder Box, Inc., has two company-owned retail stores within the United States and 128 franchisee-owned retail stores within the United States; and a franchisee-owned retail store will be operational by December 1999 in Santiago, Chile. Franchisees pay Tinder Box International, Ltd., a one-time franchise fee of US$30,000.00 and between 4% and 5% of gross revenues per Tinder Box retail store under a ten-year franchise agreement. Tinder Box International, Ltd., provides advertising support to franchisees. The Nassau Marriott Resort and Crystal Palace Casino located in Nassau, the Bahamas, has featured a nightly one hour and forty-five minute joint performance offering a musical review of Cuban culture and Bahamian culture by 38 Republic of Cuba nationals and 22 Bahamian nationals. The Nassau Marriott Resort and Crystal Palace Casino is managed by Washington, D.C.-based Marriott International, Inc. (1998 revenues exceeded US$8 billion), which operates 1,300 properties in 56 countries. The Nassau Marriott Resort and Crystal Palace Casino is owned by Wichita, Kansas-based Mr. Philip Ruffin. The Wyndham Aruba Beach Resort & Casino, which is managed by Dallas, Texas-based Wyndam International, Inc., has hosted a nightly show, “An Evening In Havana- No Passport Required.” The owner of the Wyndham Aruba Hotel & Casino is a Venezuela-based company. The Wyndham Aruba Hotel & Casino has compensated Republic of Cuba government-operated Artex S.A., which, in turn, has compensated the performers who are Republic of Cuba nationals. PAM SHRIVER, ZENA GARRISON, DR. “PATCH” ADAMS, MILWAUKEE SYMPHONY VISIT CUBA- Professional tennis players, Ms. Pam Shriver and Ms. Zena Garrison, visited the Republic of Cuba on 15 December 1999 and 16 December 1999 under a license from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C. The purpose of the visit was to hold an exhibition match with Republic of Cuba nationals as partners and to host a series of tennis clinics. Other visitors last week included Dr. Hunter “Patch” Adams, known within the United States as the “Doctor of Laughs” for his use of clowns and humor with pediatric patients, along with a 103-member healthcare delegation. The actor Mr. Robin Williams played the role of Dr. Adams in a recent motion picture. And, the Milwaukee Symphony Orchestra visited the Republic of Cuba, becoming the first major United States-based symphony orchestra to perform in the Republic of Cuba since 1959. Milwaukee, Wisconsin-based Briggs & Stratton Corporation (1998 revenues exceeding US$1 billion) contributed US$25,000.00 to be a sponsor of the Milwaukee Symphony Orchestra’s visit to the Republic of Cuba. Briggs & Stratton Corporation manufactures and sells components for original equipment manufacturers, namely gasoline engines for outdoor powered equipment. LEISURE CANADA
TRADING ON CANADIAN VENTURE EXCHANGE- North Vancouver, Canada-based
leisure Canada, Inc. (CDNX:LCN) reported that on 29 November 1999 the
common shares of Leisure Canada Inc. commenced trading on the Canadian
Venture Exchange (CDNX) and was de-listed from the Canadian Dealer Network.
Leisure Canada, Inc., through its North Vancouver, Canada-based Wilton
Properties subsidiary, plans to invest approximately US$400 million to
develop within the Republic of Cuba hotels, marinas, golf courses, equestrian
riding centers, cruise ship facilities, tennis courts, convention centers,
health spas, retail facilities, and eco-tourism facilities in through
a joint venture with Republic of Cuba government-operated Gran Caribe
S.A., one of the three largest Republic of Cuba government-operated tourism
companies. Construction is expected to begin in January 2000 at
Jibacoa, a 5.5 square kilometer waterfront property located 65 kilometers
east of the city of Havana on the coast highway, midway between Havana
and the resort area of Varadero, 140 kilometers east of Havana.
In 1997, then San Francisco, California-based BancAmerica ROBERTSON STEPHENS
Investment Management, an investment banking company with assets of US$2
billion specializing in emerging growth companies, purchased a 26.2% (fully
diluted) investment in Leisure Canada. The investment was made through
a registered offshore fund, ROBERTSON STEPHENS Orphan Fund, located on
Grand Cayman, Cayman Islands. BancAmerica ROBERTSON STEPHENS Investment
Management announced in November 1998 that it was being purchased by a
group of investors, which included the company's original founders.
BancAmerica ROBERTSON STEPHENS has since changed its name to BancBoston
Robertson Stephens, Inc., and is a wholly owned subsidiary of Boston,
Massachusetts-based FleetBoston Financial. The Office of Foreign
Assets Control (OFAC) of the United States Department of the Treasury
in Washington, D.C. authorizes companies subject to United States law
to have a non-controlling investments in third country companies that
have commercial activities within the Republic of Cuba provided that the
investments do not result in control in fact of the third country company
and provided that a majority of the revenues of the third country company
are not produced from commercial activities within the Republic of Cuba.
[OFAC 4 March 1994]. Other investors in Leisure Canada include Paris,
France-based Societe General and Paris, France-based LCF Rothschild.
Leisure Canada reports no current revenues from operations within the
Republic of Cuba, but expects that within the next two years more than
51% of its revenues will be from operations within the Republic of Cuba.
In February 1999, Leisure Canada, Inc., announced the appointment of Mr.
Simon F. Cooper as a member of the Board of Directors. Mr. Cooper
is President of Toronto, Canada-based Marriott Lodging Canada and is Senior
Vice President-Lodging, Canada Region for Washington, D.C.-based Marriott
International, Inc. (1998 global revenues exceeding US$9 billion).
Undisclosed is whether Mr. Cooper and/or Marriott International, Inc.,
has now or plans to have a financial interest in Leisure Canada.
Mr. Cooper previously served as President and Chief Operating Officer
of Toronto, Canada-based Delta Hotels and Resorts (a subsidiary of Calgary,
Alberta, Canada-based Canadian Pacific Limited), which had managed properties
within the Republic of Cuba, but in 1998 ceased all activity within the
Republic of Cuba. Leisure Canada and Paris, France-based Meridien
Gestion SA (a subsidiary of London, United Kingdom-based Forte Hotels
which itself is a subsidiary of London, United Kingdom-based Granada Group
Plc) which manages Le Meridien Hotels & Resorts have an agreement
to develop the Le Meridien Village in Jibacoa. The new development
will be similar to the Forte Village located in Sardinia, Italy, reportedly
the company's most profitable property. Forte Hotels manages more
than 400 properties with a combined 54,000 rooms worldwide. Le Meridien
Hotels and Resorts manages more than 90 properties with a combined 24,000
rooms worldwide. Le Meridien Hotels and Resorts will assist in the
"design, development, and mangement" of three properties in Jibacoa.
In November 1998, Meridien Gestion S.A. signed a Letter of Intent with
Leisure Canada whereby Meridien Hotels and Resorts would manage and, perhaps,
have an equity interest in, five hotels with a combined 1,000 rooms.
The Letter of Intent stated that the initially agreed three hotels would
be in operation within 30 months of a final signed agreement between Meridien
Gestion S.A. and Leisure Canada. Leisure Canada, Inc. and PGAGM
have a joint venture agreement to establish professional golf within the
Republic of Cuba by assisting in the organization of amateur golf within
the Republic of Cuba through the development of PGA of the United Kingdom
and Ireland golf academies to provide for the coaching of amateur golfers
and professional golfers and for the training of both amateur golfers
and professional golfers. The joint venture will merchandise the
PGA of the United Kingdom and Ireland brand and market media rights.
Established in 1992, PGAGM (which shares a similar name but is not controlled
by Palm Beach Gardens, Florida-based PGA of America) is a subsidiary company
of the PGA of the United Kingdom and Ireland, the oldest professional
golf association in the world. Ponte Vedra Beach, Florida-based
PGA tour is also not affiliated with the PGA of the United Kingdom and
Ireland. The PGA of the United Kingdom and Ireland, and/or the PGA
of any other country, the PGA tour in U.S. HEALTHCARE
EXHIBITORS PERMITTED BY BXA TO STORE PRODUCTS IN CUBA- The Bureau
of Export Administration (BXA) of the United States Department of Commerce
in Washington, D.C., has authorized participants in the U.S. Healthcare
Exhibition (25 January 2000 to 29 January 2000) in the city of Havana
to store their products after the completion of the U.S. Healthcare Exhibition
at a secured warehouse (building M1) located in the Wajay Zona Franca
(Free Trade Zone) adjacent to the Jose Marti International Airport in
Havana. A representative of the United States Interests Section
in Havana, Republic of Cuba, had visited the facility on three occasions
before final authorization was granted. Westport, Connecticut-based
PWN Exhibicon International LLC, the organizer of the U.S. Healthcare
Exhibition, secured the storage authorization at a substantial discount
(reduced 66%) on storage fees to make cost-effective the transportation
of healthcare products by exhibitors to the Republic of Cuba toward increasing
sales opportunities for those healthcare products. Exhibitors
will not need return exhibited products to the United States prior to
any consummated sale to authorized entities within the Republic of Cuba.
In addition, exhibitors may arrange storage for any products that will
be donated to authorized entities within the Republic of Cuba. The
25,000 square foot air-conditioned warehouse was completed in September
1999 and was constructed with materials imported from Canada. The
warehouse is managed by Toronto, Canada-based P.I. Di Luca & Associates,
the company that also constructed the building. The landlord of
building M1 is Caribe-Euro International Holdings, Inc., a joint venture
between P.I. Di Luca & Associates and Udine, Italy-based Caribe-Euro
Holdings, Inc. The coordination of product storage services for
the U.S. Healthcare Exhibition is being provided by the Havana, Republic
of Cuba, office of Mississauga, Canada-based WLVW Logistics GMBH, exclusive
agent for Osnabruck, Germany-based Hellmann Worldwide Logistics, Inc.
(1998 revenues exceeding US$2 billion and 15,000 employees worldwide).
WLVW Logistics GMBH is a tenant in building M1. Hellmann Worldwide
Logistics, Inc., is a 100% family-owned company established in 1871 by
Mr. Carl Hellmann as a local horse-drawn delivery service. Currently,
Hellmann Worldwide Logistics, Inc., has offices in more than 368 cities
in 128 countries. Miami, Florida-based Hellmann Worldwide Logistics,
Inc., was established in 1988, and has 18 offices throughout the United
States. The Wajay Free Trade Zone is managed by Almacenes Universales
S.A., a subsidiary of the Revolutionary Armed Forces of the Republic of
Cuba.
HELLMANN WORLDWIDE LOGISTICS TO TRANSPORT 10,000 CONTAINERS FROM CANADA TO CUBA IN 1999- Mississauga, Canada-based WLVW Logistics GMBH, exclusive agent for Osnabruck, Germany-based Hellmann Worldwide Logistics, Inc. (1998 revenues exceeding US$2 billion and 15,000 employees worldwide) reported that the company would serve as freight forwarder for 10,000 20-foot containers to the Republic of Cuba in 1999. Overall exports from Canada to the Republic of Cuba include wheat, corn, feed grain, meat, vegetables, dairy, wood, fertilizers, metal, machinery, vehicles, and consumer goods. WLVW Logistics GMBH reports that there continues to be a substantial lack of containers being shipped from the Republic of Cuba to Canada. Overall exports from the Republic of Cuba to Canada include sugar, seafood, ores (largest category), and textiles; tobacco is transported by air carriers. Hellmann Worldwide Logistics, Inc., is a 100% family-owned company established in 1871 by Mr. Carl Hellmann, has grown from a local horse-drawn delivery service to a global freight forwarder with offices on five continents. Currently, Hellmann Worldwide Logistics, Inc., has offices in more than 368 cities in 128 countries. Miami, Florida-based Hellmann Worldwide Logistics, Inc., was established in 1988, and has 18 offices throughout the United States. For additional information contact telephone (905) 564-6621 or facsimile (905) 564-2985. UNITED STATES COMPONENT TO CRUISE SHIP ARRIVIALS- The Ministry of Tourism of the Republic of Cuba reported that passenger cruise ships would transport approximately 25,000 tourists to the Republic of Cuba during the 1999-2000 season (December-April), compared to approximately 20,000 tourists to the Republic of Cuba during the 1998-1999 season. The estimate for the 1999-2000 season is reportedly lower than planned. Six passenger cruise ships are scheduled to visit ports within the Republic of Cuba, including the 1,257-passenger Sundream, owned by London, United Kingdom-based Airtours plc. Miami, Florida-based Carnival Corporation (1998 revenues exceeding US$1 billion) owns approximately 26% of Airtours plc. DONALDSON, LUFKIN & JENRETTE HAS INVESTMENT IN CUBA-RELATED INSURANCE COMPANY- A subsidiary of New York City, New York-based Donaldson, Lufkin & Jenrette (1998 assets exceeding US$50 billion) will be one of the owners of the newly-established London, United Kingdom-based HLF Insurance Holdings (which will have revenues of approximately US$400 million and a presence in forty-one countries). HLF Insurance Holdings, will reportedly become the sixth-largest insurance brokerage in the world. Donaldson, Lufkin & Jenrette is a subsidiary of New York City, New York-based The Equitable Companies Incorporated (1998 assets exceeding US$150 billion) which is a subsidiary of Paris France-based AXA SA. Approximately three years ago, Donaldson, Lufkin & Jenrette purchased London, United Kingdom-based Phoenix Partnership (now known as DLJ Phoenix). In March 1999, DLJ Phoenix established DLJ Phoenix Private Equity Limited, a venture capital fund with non-United States-based investors and United States-based investors. HLF Insurance Holdings will be created from the merger of London, United Kingdom-based Lambert Fenchurch PLC and London, United Kingdom-based Heath Group. The new company will have a substantive market position in marine insurance, aviation insurance, protection and indemnity insurance, reinsurance, international construction insurance, professional indemnity insurance, kidnap and ransom insurance, and fine arts insurance. In November 1998, Lambert Fenchurch PLC, a broker for London, United Kingdom-based Lloyds of London, signed an agreement with Republic of Cuba government-operated National Bank of Cuba, whereby Lambert Fenchurch PLC agreed to serve as guarantor (as a broker) for US$100 million in trade credits. The agreement, a form of political risk insurance, was to permit Republic of Cuba government-operated companies to obtain financing for trade and investments, and result in lower interest rates (currently between 14% and 22% on an annual basis). Thus far, none of the funds have been made available due to existing financial obligations to third countries by the National Bank of Cuba having yet to be resolved. London, United Kingdom-based Lambert Fenchurch Marine Group Limited, through its Hull and Liability Division, provides insurance for much of the Republic of Cuba’s maritime shipping activity. Prior to the merger with Heath Group, Lambert Fenchurch PLC reported that it was the 4th-largest insurance brokerage in the United Kingdom and the 8th-largest insurance brokerage in the world. NEW YORK CITY TO HAVANA CHARTER FLIGHTS UPDATE- Hialeah, Florida-based Marazul Charters, Inc., is scheduled to begin nonstop airline charter services between John F. Kennedy International Airport in New York City and the city of Havana, Republic of Cuba, on 3 December 1999. Marazul Charters, Inc., also has an office in Weehawken, New Jersey. Individuals subject to United States law who are representatives of United States-based companies are permitted to travel on these charter flights (and the existing charter flights operating from Miami International Airport in Miami, Florida) provided that they obtain a specific license from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury. Any individual subject to United States law traveling to the Republic of Cuba under a general license (no specific documentation from the OFAC is required) or specific license issued by the OFAC is permitted to travel on these charter flights. However, individuals subject to United States law traveling to the Republic of Cuba under the “fully hosted” general license provision are not permitted to travel on these charter flights. The US$629.00 roundtrip, 3½ flight will initially operate once per week, departing approximately 10:00 p.m., with the returning flight departing Havana’s Jose Marti International Airport at approximately 3:00 a.m. The flights will use a 150-passenger Blagnac Cedex, France-based Airbus Industrie-manufactured A-320 aircraft operated by San Salvador, El Salvador-based Grupo Taca (TACA International of El Salvador, TACA de Honduras, Aviateca of Guatemala, LACSA of Costa Rica, COPA of Panama, and NICA of Nicaragua). In March 1998, Grupo Taca established INTER-CUBA with Republic of Cuba government-operated ENSA, a subsidiary of the Instituto Aeronautica Civil de Cuba (IACC), to operate14-passenger Cessna Grand Caravan 208B aircraft with Costa Rica nationals serving as crews. The Cessna Aircraft Company, which is located in Wichita, Kansas, is a subsidiary of Rhode Island-based Textron, Inc. (1998 revenues exceeding US$10 billion). INTER-CUBA provides services between Havana, Varadaro, Cayo Coco, Trinidad, Cayo Largo, and Gerona. The OFAC has also approved nonstop airline charter services between Los Angeles International Airport in Los Angeles, California, and Havana. To date, there has yet to be adequate passenger demand to make such flights profitable for a United States-based company to operate. OWNER OF MINNESOTA TWINS BASEBALL TEAM GIVES US$100,000.00 FOR COLLEGE GAME- Minneapolis, Minnesota-based Carl and Eloise Pohlad Family Foundation (1998 assets of US$14 million) has given a project grant in the amount of US$100,000.00 to the St. Paul, Minnesota-based University of St. Thomas to substantially finance a series of baseball games between Republic of Cuba government-operated baseball teams and college-level baseball teams from the Minneapolis/St.Paul area. In January 2000, a baseball team from the University of St. Thomas is expected to travel to the Republic of Cuba to play against teams from 1) Instituto Superior Politecnico Jose Antonio Echevervia and 2) University of Havana. There would then be reciprocal baseball games played in Minnesota in the spring of 2000. The University of St. Thomas baseball team finished in second place in 1999 NCAA Division III. Mr. Pohlad owns the Major League Baseball franchise team, Minnesota Twins. BXA INCLUDES U.S. HEALTHCARE EXHIBITION ON INTERNET- The Bureau of Export Administration of the United States Department of Commerce in Washington, D.C., has included a four-page guidance about the U.S. Healthcare Exhibition on the Internet at http://www.bxa.gov under the section “The News from BXA.” More than fifty United States-based companies have thus far reserved exhibition space at the U.S. Healthcare Exhibition scheduled for 25 January 2000 to 29 January 2000 in the city of Havana. The general categories for exhibitors are: Medical equipment, medical instrument, medical supply, medicine, medicated products, pharmaceutical, medical devices, hospital equipment, laboratory equipment, ambulances, physical therapy equipment, medivac equipment, training programs, training materials, and informational materials (including videos, books, etc.). NOTE: Healthcare products used in biotechnological research/production are not eligible. Decatur, Illinois-based Archer Daniels Midland Company (1998 revenues exceeded US$14 billion) is the exclusive vitamin/food sponsor of the U.S. Healthcare Exhibition. Archer Daniels Midland Company (ADM) is the world’s largest producer of natural vitamin E and also produces vitamin C, lecithin (a source of choline which plays an important role in the function of the brain’s neurotransmitters), Isoflavones (a natural component of soybeans), phytosterols, and many other products. Other categories of sponsorships include: Pharmaceutical, Medical Equipment, Travel, Air Carrier, and Air Freight. The Honorable Vicki Huddleston, Chief of the United States Interests Section in the city of Havana, Republic of Cuba, will host a reception and briefing on 24 January 2000 at her official residence for exhibitors participating in the U.S. Healthcare Exhibition. The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., has licensed Westport, Connecticut-based PWN Exhibicon International L.L.C., to hold an exhibition within the Republic of Cuba to promote the sale of United States-produced healthcare products. Additional information may be obtained on the Internet at http://www.pwnexhibicon.com, by telephone (203) 222-8660, or by facsimile (203) 222-8335. SMITHLKINE BEACHAM MAY SEEK TO MARKET ADDITIONAL CUBA HEALTHCARE PRODUCTS- Brentford, United Kingdom-based SmithKline Beacham plc (1998 revenues exceeding US$10 billion) plans to evaluate additional products produced by Republic of Cuba government-operated Carlos Finlay Institute and other Republic of Cuba government-operated healthcare products research facilities. Smithkline Beecham and its United States-based subsidiary, Philadelphia, Pennsylvania-based SmithKline Beacham, received a license from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., authorizing SmithKline Beacham to enter into an agreement with Carlos Finlay Institute for testing, clinical trials, and marketing of a Meningitis B vaccine developed by the Carlos Finlay Institute in 1985. Since SmithKline Beacham owns the Brussels, Belgium-based facility where the testing and clinical trials will be held, an OFAC license was required. SmithKline Beacham currently markets vaccines to prevent Meningitis A and to prevent Meningitis C. Carlos Finlay Institute could eventually receive US$10 million to US$20 million from SmithKline Beecham plc for a five-year exclusive right to market the vaccine. Under the terms of the OFAC license, during the testing and clinical trial stages, SmithKline Beacham will compensate Carlos Finlay Institute in the form of healthcare products and food products equal to the U.S. Dollar value of the compensation. If the Meningitis B vaccine is marketed, SmithKline Beacham will then make royalty payments to Carlos Finlay Institute in U.S. Dollars or their equivalent. Approximately 1,000 United States citizens contract Meningitis B each year, of which 120 die. The Honorable Arlen Specter (R-Pennsylvania) visited the Republic of Cuba from 2 June 1999 to 3 June 1999, where he met with representatives of the Ministry of Public Health of the Republic of Cuba and visited the Carlos Finlay Institute. Senator Specter said that “Cuba can benefit from the research of the National Institutes of Health [NIH] and we can benefit from the research [the Cubans] are doing in meningitis B, for example.” He said that a meeting would be requested with The Honorable Donna Shalala, United States Secretary of Health and Human Services, to discuss opportunities for bilateral cooperation in public health matters. Senator Specter is the Chairman of the Subcommittee on Labor, Health and Human Services, Education, and Related Agencies of the Committee on Appropriations of the United States Senate. Also supporting the OFAC license application request by SmithKline Beacham were from the United States Senate: The Honorable Christopher Dodd (D-Connecticut) and The Honorable Richard Lugar (R-Indiana), among others; and from the United States House of Representatives: The Honorable Tom DeLay (R-Texas), The Honorable Sonny Callahan (R-Alabama), The Honorable Joseph McDade (R-Pennsylvania), The Honorable James Greenwood (R-Pennsylvania), The Honorable Nancy Pelosi (D-California), The Honorable Henry Waxman (D-California), and The Honorable Howard Berman (D-California) among others. ILLINOIS GOVERNOR
VISITS CUBA ON “HUMANITARIAN” LICENSE FROM THE OFAC- The Honorable
George H. Ryan (R), Governor of the State of Illinois, is visiting the
Republic of Cuba from 23 October 1999 to 27 October 1999 under a license
from the Office of Foreign Assets Control (OFAC) of the United States
Department of the Treasury in Washington, D.C. Governor Ryan is
the first serving governor to visit the Republic of Cuba since the 1959
revolution. From 14 September 1999 to 17 September 1999, Mr. Robert
Newtson, Chief of Staff to Governor Ryan and Mr. Joseph Hannon, Managing
Director- International Business, of the State of Illinois Department
of Commerce and Community Affairs, visited the Republic of Cuba to prepare
for the visit of Governor Ryan to the Republic of Cuba. Governor
Ryan is delivering approximately US$1 million in value of donated products
including educational materials and healthcare products. Although
the officially stated reason for the visit is “humanitarian,” the original
purpose and the current purpose of the visit is to identify opportunities,
to solidify existing relationships, and to expand existing relationships
for Illinois-based companies, educational institutions, philanthropic
organizations, cultural organizations, and religious groups. Individually,
each of the members of the delegation could have obtained licenses from
the OFAC to visit the Republic of Cuba for specifically commercial reasons
(agricultural products and healthcare products being two of many categories
of exports permitted to the Republic of Cuba), for specifically cultural
reasons, for specifically religious reasons, for specifically educational
reasons, for specifically journalist reasons, for specifically philanthropic
reasons, or for specifically humanitarian reasons. This visit
also the first occasion that the OFAC has permitted a spouse (the wife
of the governor) to participate where the spouse has no specific function
that would generally be considered to be licensable by the OFAC.
Several years ago, the wife of the president of a United States-based
television network was denied a license by the OFAC to visit the Republic
of Cuba with her husband. Elk Grove Township, Illinois-based
United Airlines, Inc. (1998 revenues exceeded US$17 billion) provided
the aircraft which is transporting the delegation. United Airlines
aircraft have been chartered by Miami, Florida-based Airline Broker Companies,
Inc. (ABC), for use in regularly-scheduled aircraft charters between the
United States and the Republic of Cuba. Representatives of companies
reported to be participating in the visit include: 1) Mr. Allen
Andreas, Chairman and Chief Executive Officer of Decatur, Illinois-based
Archer Daniels Midland Company (1998 revenues exceeded US$16 billion)
2) Mr. Richard Reising, Senior Vice President of Archer Daniels
Midland Company 3) Mr. Jorge Guerra, Vice President, Regional Business
Practice Committee of Deerfield, Illinois-based Baxter International (1998
revenues exceeded US$6 billion) Mr. Dough Crew, Manager- Government Affairs,
Peoria, Illinois-based Caterpillar Inc. (1998 revenues exceeded US$20
billion) and 4) Mr. William Sand of the Moline, Illinois-based
John Deere Foundation affiliated with Deere & Company (1998 revenues
exceeded US$13 billion). Governor Ryan is expected to visit
healthcare facilities (genetic research and biotechnological research),
agricultural facilities (farm and cattle research facility), churches,
museums, schools (University of Havana), various officials of the government
of the Republic of Cuba, and Republic of Cuba nationals who oppose commercial,
economic, and political policies of the government of the Republic of
Cuba. The forty-five member delegation includes:
CIBC MELLON TRUST IS TRANSFER AGENT FOR CANADA COMPANY WITH CUBA ASSETS- Toronto, Canada-based CIBC Mellon Trust Company, a subsidiary of Pittsburgh, Pennsylvania-based Mellon Bank Corporation (1998 assets managed exceeding US$200 billion) is the Transfer Agent and Registrar for Vancouver, British Columbia, Canada-based Commercial Consolidators Corp. (CCZ: Vancouver Stock Exchange), a company which distributes business products and equipment. Commercial Consolidators Corp. was incorporated on 4 May 1998 in Alberta, British Columbia, Canada. CIBC Mellon Trust Company also is the Transfer Agent and Registrar for Calgary, Canada-based Beau Canada Exploration Ltd., whose subsidiary, Calgary, Canada-based Genoil, Inc., has explored for oil within the Republic of Cuba. WALT DISNEY COMPANY TO ESTABLISH RESTAURANT WITH CUBA MANAGEMENT HISTORY- Burbank, California-based The Walt Disney Company (1998 revenues exceeded US$22 billion) reported that a 600-seat tapas restaurant will be established at The Disneyland Resort in Anaheim, California. According to a media release from The Walt Disney Company, “Y Arriba Y Arriba,” will feature tapas, the snack-sized dishes that are a favorite throughout the Latin world, while the teatro will feature live entertainment including concerts by Latin stars of today and tomorrow. “Y Arriba Y Arriba” is the latest milestone in the world of Latin dining and entertainment for the Cachaldora/Currais family - a journey that started in Cuba nearly 200 years ago when their ancestors arrived from Spain and opened their first restaurant. The family's most recent success has been Club Tropigala, the world-famous Latin supper club in the heart of Miami Beach. The Currais family established La Zaragozana, the historic first family restaurant in Cuba. “Y Arriba Y Arriba” will showcase the varied cultures, countries and history of the Latin world. The restaurant's decor will feature interesting and intriguing Latin paintings, sculpture and crafts. The 18,000-square-foot entertainment center will have several bars and a coffee area, as well as a branded merchandise sales facility, where patrons can purchase t-shirts, caps and a variety of other items. “Y Arriba Y Arriba” will capitalize on the rapid demographic growth of Hispanics in the United States. By the year 2020, Hispanics are expected to be 18 percent of the total population, making the U.S. the second biggest Latin nation behind Mexico. In Los Angeles and Miami, Hispanics already represent more than 35 percent of the population. Nation's Restaurant News recently identified Latin foods as "ready for meteoric growth in the U.S." -- a trend that will clearly benefit “Y Arriba Y Arriba.” On 19 July 2000, the United States National Soccer Team is scheduled to play an exhibition match in the Republic of Cuba which is expected to be broadcast by Bristol, Connecticut-based ESPN, Inc., which is 80% owned by The Walt Disney Company and 20% owned by New York City, New York-based The Hearst Corporation (1998 revenues US$2 billion). On 28 March 1999, ESPN broadcast the Baltimore, Maryland-based Baltimore Orioles Major League Baseball Team exhibition baseball game against the Republic of Cuba government-operated National Team, which the Baltimore Orioles won by a score of 3 to 2, at the 50,000-seat Estadio Latinamericanos Stadium in the city of Havana. ESPN broadcast the exhibition baseball game and paid the government of the Republic of Cuba what the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., described as “normal and reasonable” fees. United States-based companies advertising on ESPN during the baseball exhibition game included: General Motors Corporation, Suzuki, Sprite, MCI WorldCom, MetLife, Roundup, Range Rover, Head and Shoulders shampoo, 10-10-321 long distance telephone service, Little Caesars, and Advil among others. Miami, Florida-based WPLG-TV, an affiliate of New York City, New York-based ABC, Inc. (which is owned by The Walt Disney Company), simulcast the baseball game with ESPN. WPLG-TV reported that it did not pay any fees to the government of the Republic of Cuba for rights to broadcast the baseball game. The Anaheim, California-based Anaheim Angeles Major League Baseball Team, which is owned by The Walt Disney Company, is seeking a license from the OFAC to play an exhibition baseball game in the city of Havana. The Walt Disney Company has many subsidiaries, including: 1) Hollywood Records (the OFAC permits the exportation of music product from the United States to the Republic of Cuba for distribution within the Republic of Cuba and the OFAC permits the importation of existing music product from the Republic of Cuba for distribution within the United States). 2) Disney Channel (the OFAC permits the exportation of television product and motion picture product from the United States to the Republic of Cuba for distribution within the Republic of Cuba and the OFAC permits the importation of existing television product and existing motion picture product from the Republic of Cuba for distribution with the United States. Individuals subject to United States law are permitted by the OFAC to remit to Republic of Cuba nationals profits from the distribution within the United States of music product, television product, and motion picture product. The San Diego, California-based San Diego Padres Major League Baseball Team is also reportedly discussing the holding of an exhibition baseball game in Havana. U.S. INTERESTS SECTION TO HOST RECEPTION FOR U.S. HEALTHCARE EXHIBITION PARTICIPANTS- The Honorable Vicki Huddleston, Chief of the United States Interests Section in the city of Havana, Republic of Cuba, will host a reception and briefing on 24 January 2000 at her official residence for exhibitors participating in the U.S. Healthcare Exhibition. Approximately forty-five United States-based companies have thus far reserved exhibition space at the event. Decatur, Illinois-based Archer Daniels Midland Company (1998 revenues exceeded US$14 billion) is the exclusive vitamin/food sponsor of the U.S. Healthcare Exhibition being held at the PAPEXPO exhibition center in the city of Havana, Republic of Cuba, from 25 January 2000 to 29 January 2000. Archer Daniels Midland Company (ADM) is the world’s largest producer of natural vitamin E and also produces vitamin C, lecithin (a source of choline which plays an important role in the function of the brain’s neurotransmitters), Isoflavones (a natural component of soybeans), phytosterols, and many other products. Other categories of sponsorships include: Pharmaceutical, Medical Equipment, Travel, Air Carrier, and Air Freight. The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., has licensed Westport, Connecticut-based PWN Exhibicon International L.L.C., to arrange and to hold an exhibition within the Republic of Cuba to promote the sale of United States-produced healthcare products. Additional information may be obtained on the Internet at http://www.pwnexhibicon.com or by telephone (203) 222-8660 or by facsimile telephone (203) 222-8335. J.P. MORGAN & CO. ADVISES BOTH TABACALERA S.A. AND SEITA S.A. IN MERGER- New York City, New York-based J.P. Morgan & Co. Incorporated (1998 assets exceeded US$200 billion) through Madrid, Spain-based J.P. Morgan Espana S.A. and Paris, France-based J.P. Morgan & Cie S.A., is serving as the advisor to both Madrid, Spain-based Tabacalera S.A. and to Paris, France-based Seita S.A. for their announced merger, valued at US$3.3 billion. An increasing number of United States-based financial institutions are being retained as advisors in transactions within which at least one of the parties involved has substantial commercial interests with Republic of Cuba government-operated entities. Tabacalera S.A. and Seita S.A. are, respectively 1) the two largest purchasers of Republic of Cuba-produced cigars, 40% of the 126 million Republic of Cuba-produced cigars reportedly exported in 1998 2) the two largest sources of financing for Republic of Cuba-produced tobacco, approximately US$50 million (US$40 million from Tabacalera S.A. and US$10 million from Seita S.A.) for the 1998-1999 tobacco harvest and 3) the two largest purchasers of Republic of Cuba-produced tobacco leaf, almost all of the 13,000 tons exported. The newly-formed company, Altadis (Alliance Tabac Distribution), will have a market value of approximately US$7.2 billion and annual revenues of approximately US$11.8 billion, and will become the world’s largest cigar manufacturer, with 24.7% (3 billion units) of the global market. The government of Spain holds a 3.2% share in Tabacalera S.A. In 1999, Seita S.A. purchased Fort Lauderdale, Florida-based Consolidated Cigar Holdings, Inc., which produces non-Republic of Cuba-produced cigar brands Montecristo and H. Upmann, and the brands Dunhill and Dutch Masters, among others. Seita S.A. ownership of Consolidated Cigar Holdings Inc., positioned the company to become the distributor within the United States for Republic of Cuba-produced cigar brands Montecristo, H. Upmann, and Por Larranaga. Altadis will reportedly control 36% of the United States cigar market (47% of mass produced cigars and small cigars, and 20% of premium cigars). Seita S.A. has long held the exclusive distribution rights within France for Republic of Cuba-produced cigars. Tabacalera S.A. and Seita S.A. import Republic of Cuba-produced tobacco to produce mini-cigars (less than 3 grams) under the brand names Montecristo, Cohiba, Partagas, La Gloria Cubana, and H. Upmann for sale in countries on the European continent. Tabacalera S.A., signed a marketing agreement in May 1999 with Republic of Cuba government-operated Habanos S.A. (the exclusive worldwide marketer of Republic of Cuba-produced cigar products) to market mini-cigars throughout countries in Europe. Habanos S.A. is to supply the tobacco to produce Partagas brand mini-cigars, La Gloria Cubana brand mini-cigars, and H. Upmann brand mini-cigars in Spain. In April 1999, Seita S.A., Habanos S.A., and the Union of Agricultural Companies of the Republic of Cuba, established a joint venture, MiniCohiba S.A., to produce Cohiba brand mini-cigars in the Republic of Cuba for export. MiniCohiba S.A., with an initial reported capitalization of US$5 million, is expected to be operational by 2000 and produce 8 million Cohiba brand mini-cigars during the first twelve months of production, with annual production eventually reaching 25 million units. In December 1998, Cannery Islands-based CITA (a subsidiary of Tabacalera S.A.), Habanos S.A., and the Union of Agricultural Companies of the Republic of Cuba, established a joint venture, Compania de Tobacos Islanos, to produce mini-cigars in the Republic of Cuba. CITA is reportedly investing US$2 million and production is expected to begin by the end of 1999. MAYORS OF KNOXVILLE, BALTIMORE, AND CHARLESTON VISIT HAVANA- The Honorable Victor Ashe, Mayor of Knoxville, Tennessee; The Honorable Kurt Schmoke, Mayor of Baltimore, Maryland; and The Honorable Joseph Riley, Mayor of Charleston, South Carolina; along with Ms. Camille Jones Strachan, Vice Chairman of the Washington, D.C.-based National Trust for Historic Preservation, visited the city of Havana, Republic of Cuba from 4 October 1999 to 6 October 1999. The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., issued a license for the visit, the purpose of which was to review historic preservation projects. NIKE TRADEMARK IN CUBA OWNED BY COMPANY IN SPAIN- Madrid, Spain-based Cidesport S.A. reportedly has the rights to the “Nike” name within the Republic of Cuba currently used worldwide by Beaverton, Oregon-based Nike, Inc. (1998 revenues exceeded US$9 billion). Cidesport S.A. is a former distributor within Spain for Nike-produced products. The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., does permit United States companies to register trademarks and patents within the Republic of Cuba. BRIGGS & STRATTON CORPORATION A SPONSOR OF MILWAUKEE SYMPHONY VISIT TO CUBA- Milwaukee, Wisconsin-based Briggs & Stratton Corporation (1998 revenues exceeding US$1 billion) has contributed US$25,000.00 to be a sponsor of the Milwaukee Symphony Orchestra’s visit to the Republic of Cuba in December 1999. Briggs & Stratton Corporation manufactures and sells components for original equipment manufacturers, namely gasoline engines for outdoor powered equipment. CUBA ON TRAVELCHANNEL.COM- Oak Ridge, Tennessee-based Interactive Pictures Corporation (IPIX) and Bethesda, Maryland-based Discovery Communications, Inc. (DCI), are providing visitors to http://www.travelchannel.com to “See Cuba As If They Were There.” IPIX images provide the viewer with the ability to pan up to the sky, down to the ground, and all the way around the image. The viewer sees everything as if they were standing in the picture. According to a media release from IPIX, “At Discovery, we don't just tell our viewers about exciting travel destinations, we give them the feeling of being there with IPIX,” said Mr. John Hendricks, Chairman and Chief Executive Officer of Discovery Communications Inc. “IPIX technology is a perfect fit for TravelChannel.com because it allows the viewers to virtually step into the picture- they can see everything they would if they were really wiggling their toes in the sand of a Cuban beach…” Visitors can “take a walking tour of Old Havana…” Travel Channel is the only television network devoted exclusively to travel. DCI is a privately held media company which operates: Discovery Channel with 77.3 million subscribers, The Learning Channel (TLC) with 71.3 million subscribers, Animal Planet with 53 million subscribers, Travel Channel with 33 million subscribers, and other channels. DCI also markets and distributes BBC America. The ownership of DCI consists of four shareholders: 1) Englewood, Colorado-based Liberty Media Corporation 2) Atlanta, Georgia-based Cox Communications, Inc. 3) New York City, New York-based Advance Communications and 4) Mr. John S. Hendricks, the Founder, Chairman and Chief Executive Officer of DCI. AMERICAN GREETINGS CORPORATION INCLUDES CUBA IN PROMOTION- Cleveland, Ohio-based American Greetings Corporation (1998 revenues exceeding US$2 billion) has included mention of individuals of Cuban descent in a media release about Spanish language greeting cards. “We have a creative team of writers, editors and designers that represent all the major Spanish-speaking segments of the Hispanic market in the United States,” said Ms. Ines Barranca, Senior Editor for American Greetings. “Our members represent a wide variety of nations, including Puerto Rico, Mexico, Cuba, Guatemala, Peru, Ecuador, Spain and the United States… The Hispanic market is so diverse that writing Spanish verses to meet the needs of all its members isn’t easy… Sometimes a message that sounds wonderful to Mexicans may simply not work with Cubans or vice versa. The key is to develop verses and sentiments that speak to all the nationalities that make up the Hispanic population.” ARCHER DANIELS MIDLAND COMPANY IS A SPONSOR OF THE U.S. HEALTHCARE EXHIBITION- Decatur, Illinois-based Archer Daniels Midland Company (1998 revenues exceeded US$14 billion) is the exclusive vitamin/food sponsor of the U.S. Healthcare Exhibition being held at the PAPEXPO exhibition center in the city of Havana, Republic of Cuba, from 25 January 2000 to 29 January 2000. Archer Daniels Midland Company (ADM) is the world’s largest producer of natural vitamin E and also produces vitamin C, lecithin (a source of choline which plays an important role in the function of the brain’s neurotransmitters), Isoflavones (a natural component of soybeans), phytosterols, and many other products. Other categories of sponsorships include: Pharmaceutical, Medical Equipment, Travel, Air Carrier, and Air Freight. To date, more than thirty companies have confirmed their participation at the U.S. Healthcare Exhibition. The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., has licensed Westport, Connecticut-based PWN Exhibicon International L.L.C., to arrange and to hold an exhibition within the Republic of Cuba to promote the sale of United States-produced healthcare products. The Bureau of Export Administration (BXA) of the United States Department of Commerce in Washington, D.C., is responsible for licensing the transportation of products to be exhibited at the U.S. Healthcare Exhibition. The U.S. Healthcare Exhibition is being held in the Republic of Cuba with the authorization of the Ministry of Public Health of the Republic of Cuba and MediCuba, the primary importer of healthcare products for hospitals, clinics, and other healthcare-related facilities for use by the Republic of Cuba’s 11 million citizens. The U.S. Healthcare Exhibition will be attended by officials of the Ministry of Public Health of the Republic of Cuba, representatives of MediCuba, hospital administrators, clinic administrators, hospital staff, clinic staff, physicians, nurses, and other healthcare personnel, from throughout the Republic of Cuba; and will be open to all Republic of Cuba nationals on a non-discriminatory basis on the final day of the event. There is no admission charge. United States-based healthcare product companies (and United States-based subsidiaries of non-United States-based companies) which manufacture, distribute, and/or market the following classifications of products are eligible to participate as exhibitors: Medical equipment, medical instrument, medical supply, medicine, medicated products, pharmaceutical, medical devices, hospital equipment, laboratory equipment, ambulances, physical therapy equipment, medivac equipment, training programs, training materials, and informational materials (including videos, books, etc.). Mr. Peter W. Nathan, President of PWN Exhibicon International L.L.C., has more than forty-three years of experience in the exhibition industry, and previously organized the first trade shows for United States companies that were held within the People’s Republic of China and within the former U.S.S.R. Mr. Nathan is a founding member director of the Society of Independent Show Organizers (SISO) and Vice Chairman of the New York Area Chapter of the International Association for Exposition Management (IAEM). Assisting PWN Exhibicon International LLC is Waldwick, New Jersey-based Kallman Worldwide, which is coordinating exhibitor recruitment and exhibitor liaison; and New York City, New York-based International Exhibition Transport (IET), which is providing shipping and drayage coordination. Additional information may be obtained on the Internet at http://www.pwnexhibicon.com or by telephone (203) 222-8660 or by facsimile telephone (203) 222-8335. AMERICAN AIRLINES TO BROADCAST “BUENA VISTA SOCIAL CLUB” ON FLIGHTS- Dallas/Fort Worth Airport, Texas-based American Airlines, Inc. (1998 revenues exceeding US$19 billion) will screen the motion picture “Buena Vista Social Club” on selected international flights during the month of October 1999. Ms. Veronica Lopes, Managing Director of In-Flight Products for American Airlines said “…we've chosen recent award-winning foreign films that may not be as well known as some of the domestic films currently in circulation. We think our customers will enjoy seeing something different.” The media release from American Airlines described “Buena Vista Social Club” as “both eclectic and emotionally charged, an insightful look at the unique music and music-makers of Cuba.” American Airlines has a Carrier Service Provider (CSP) license from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C. A CSP license authorizes a company to provide air carrier services between the United States and the Republic of Cuba. New York City-based AT&T (1997 revenues US$52 billion) was a sponsor of the 1 July 1998 live performance by the members of “Buena Vista Social Club” at Carnegie Hall in New York City. This was the first time that a Fortune 100-listed United States-based company was a public sponsor of a performance of a Republic of Cuba music group visiting the United States. AT&T, Sprint, MCI, WilTel, LDDS, and AT&T de Puerto Rico provide long distance services between the United States and the Republic of Cuba. Los Angeles, California-based KCET-TV will broadcast the “World Television Premiere of ‘Buena Vista Social Club’” on 3 November 1999 at 9:00 p.m. (EST) on PBS. According to a media release by KCET-TV, “Buena Vista Social Club,” a is a one-hour and forty-minute documentary directed by Mr. Wim Wenders (“Paris, Texas,” and “Wings of Desire”) that mixes traditional Cuban music with impressionistic glimpses of urban life in contemporary Cuba to provide a portrait of “Buena Vista Social Club,” a group of Cuban musicians, many in their 80’s and 90’s, nearly forgotten in their own country. The group, which includes some of the island’s most legendary performers, was assembled by the Grammy-winning Ry Cooder during a 1996 trip to Havana. A resulting album sold more than 1 million copies worldwide and won the 1998 Grammy for Best Tropical Latin Album. 65% TO 67% INCREASE
IN OFAC LICENSES FOR TRAVEL, CARRIER, AND REMITTANCE SERVICES- The
Office of Foreign Assets Control (OFAC) of the United States Department
of the Treasury in Washington, D.C., has, as of 12 August 1999, issued
214 travel-related and service-related licenses to 115 United States-based
companies. Approximately twelve months ago, the OFAC had issued
144 travel-related and service-related licenses to 75 United States-based
companies. Some of the companies include: Dallas Fort Worth Airport,
Texas-based American Airlines, Inc. (CSP), New York City, New York-based
American Express Travel Related Services (TSP), Paramus, New Jersey-based
Western Union Financial Services International (RF), Englewood, Colorado-based
MoneyGram Payment Systems (RF), and Fort Lauderdale, Florida-based Tico
Travel (TSP). The licenses, which are renewed every twelve months,
authorize United States-based companies to provide services for individuals
subject to United States law with respect to traveling to the Republic
of Cuba and for sending funds to the Republic of Cuba. The license
categories are: 1) Travel Services Provider (TSP) 2)
Carrier Service Provider (CSP) and 3) Remittance Forwarder
(RF). Executives of United States-based companies report that becoming
an authorized OFAC travel-related and service-related licensee for the
Republic of Cuba assists with developing a) operational
experience within the Republic of Cuba and b) relationships
with individuals within the Republic of Cuba. Some United States-based
companies have OFAC licenses to provide more than one type of service.
The following chart represents information provided by the OFAC.
Figures for 1998 are in parentheses.
St. Croix, St. John, and Water Island) were 2.1 million in 1998 with 1.6 million of the 2.1 million arriving by cruise ship. Visitor spending was US$921.4 million in 1998 according to the Government Development Bank. Mr. Johnson, in an interview with Reuters, said, “When Cuba opens up, it's going to create real havoc for the islands.” KCET-TV IN LOS ANGELES WILL BE FIRST TO BROADCAST BUENA VISTA SOCIAL CLUB FILM- Los Angeles, California-based KCET-TV will broadcast the “World Television Premiere of ‘Buena Vista Social Club’” on 3 November 1999 at 9:00 p.m. (EST) on PBS. According to a media release by KCET-TV, “Buena Vista Social Club,” a documentary directed by Mr. Wim Wenders that mixes traditional Cuban music with impressionistic glimpses of urban life in contemporary Cuba. The one-hour and 40-minute film will be followed by excerpts of a Charlie Rose interview with Wenders and one of the film's producers, guitarist Ry Cooder. Filmmaker Wenders (“Paris, Texas,” “Wings of Desire”) provides a feature-length portrait of the Buena Vista Social Club, a group of talented Cuban musicians, many in their 80’s and 90’s, nearly forgotten in their own country. The group, which includes some of the island’s most legendary performers, was assembled by the Grammy-winning Cooder during a 1996 trip to Havana. Cooder’s quest was to record an album featuring the country's traditional music, including Cuban boleros and sones, dating as far back as the 1920’s. He named the album “Buena Vista Social Club” after a private club that was a musical mecca in pre-Castro Cuba. It sold more than 1 million copies worldwide and won the 1998 Grammy for Best Tropical Latin Album. Cooder then convinced his longtime friend Wenders to return with him to Cuba to film the musicians in their homeland and in performance at various locations. The documentary reveals the joy and spontaneous creativity of these amazing musicians, including footage from studio performances, the group’s concert in Amsterdam and their historic 1998 Carnegie Hall performance. Wenders’ camera also follows the artists into the hot, dusty streets of their youth, where their recollections lead to touching and often humorous stories. In the film’s finale, viewers witness the musicians' awestruck response to being in New York City for the first time. Among the musicians Cooder rediscovered was the film’s star, 70-year-old Ibrahim Ferrer, whom Cooder nicknamed “the Nat King Cole of Cuba” for his velvety voice. Ferrer was literally born at a social club dance, won his first singing contest at age 12 and began singing professionally in 1941. In the 1950’s, he performed with legendary names in Cuban music, including the Orquesta de Chapin and Benny More. Another featured musician is 90-year-old Compay Segundo, the lead guitarist who invented the armonico, a cross between a guitar and a Cuban tres, and who reveals his zest for life when the father of five declares that he hopes to sire a sixth child. Also highlighted is Ruben Gonzalez, 77, whom Cooder describes as “the greatest piano soloist I have ever heard in my life” and who is the only survivor of a trio of pianists from the period that helped shape the future sound of Cuban music. The only woman in the group is Omara Portuondo, 68, known as “the Edith Piaf of Cuba,” a veteran of world tours who worked with Nat King Cole. These musicians join 11 others ranging in age from the 14-year-old percussionist sensation Julienne Oviedo Sanchez to 81-year-old singer/songwriter Pio Leyva. Songs featured in the film include “Chan Chan” (Francisco Repilado), “Silencio” (Rafael Hernandez), “Dos Gardenias” (Isolina Carillo), “Buena Vista Social Club” (Orestes Lopez), “Candela” (Faustino Oramas), “Viente Anos” (Maria Teresa Vera) and “El Cuarto de Tula” (Sergio Siaba). New York City-based AT&T (1997 revenues US$52 billion) was a sponsor of the 1 July 1998 performance of the “Buena Vista Social Club” at Carnegie Hall in New York City. This was the first time that a Fortune 100-listed United States-based company was a public sponsor of a performance of a Republic of Cuba music group visiting the United States. AT&T, Sprint, MCI, WilTel, LDDS, and AT&T de Puerto Rico provide long distance services between the United States and the Republic of Cuba. LONE STAR INDUSTRIES
RECEIVES OFAC LICENSE TO VISIT ASSET CLAIM IN CUBA- Mr. David W. Wallace,
Chairman of Stamford, Connecticut-based Lone Star Industries, Inc. (1998
revenues US$347.1 million), is scheduled to visit the Republic of Cuba
in October 1999. Mr. Wallace received a license from the Office
of Foreign Assets Control (OFAC) of the United States Department of the
Treasury in Washington, D.C., to visit the Republic of Cuba for the purpose
of visiting a cement plant in Mariel, 20 kilometers west of the city of
Havana. Lone Star Industries has a claim registered with the United
States Foreign Claims Settlement Commission in Washington, D.C., in the
amount of US$24.90 million. This is the first OFAC license issued
to a United States-based company having a claim registered with the Foreign
Claims Settlement Commission in Washington, D.C., for the specific purpose
of authorizing representatives of the claimant to visit the Republic of
Cuba to visually inspect the claim. Such licenses are expected to
continue to be issued. Mr. Wallace is expected to meet with representatives
of the Ministry of Foreign Affairs of the Republic of Cuba and the Ministry
of Basic Industry of the Republic of Cuba. On 27 January 1997, the
U.S.-Cuba Trade and Economic Council wrote to the OFAC seeking the criteria
for which the OFAC would grant a license to a United States-based company
having a claim registered with the Foreign Claims Settlement Commission
in Washington, D.C., for the specific purpose of authorizing representatives
of the claimant to visit the Republic of Cuba to visually inspect the
claim. On 28 February 1997, the OFAC responded (CU-155302) “Travel
for the purpose you have described does not fall into any categories in
515.560 [Cuban Assets Control Regulations, 31 C.F.R. Part 515] for
which a specific license may be issued. After consultation with
the Department of State, it has been determined that it would be inconsistent
with current policy to authorize travel transactions by U.S. persons for
the purpose described in your letter.” There are 5,911 claims
certified by the United States Foreign Claims Settlement Commission in
Washington, D.C., as of June 1972. Of these claims, 30 United States
companies hold 56.85% of the total value, which is approximately US$1,851,197,358.00.
The United States Foreign Claims Settlement Commission permitted interest
to be accrued in the amount of 6% per annum. Lone Star Industries
Inc. is being acquired by Wiesbaden, Germany-based Dykerhoff AG (1998
revenues of approximately US$2 billion) for US$1.19 billion, plus the
assumption of US$50 million in debt. Upon completion of the acquisition,
scheduled for October 1999, Dykerhoff AG will have control of the claim
of Lone Star Industries Inc., and may be permitted by the government of
the Republic of Cuba to negotiate a settlement. Monterrey, Mexico-based
Cemex SA de CV. (1998 revenues US$4.3 billion), the third-largest cement
producer in the world, provided technical assistance from 1994 through
1996 to a Republic of Cuba government-operated cement plant also located
in Mariel. Cemex SA de CV. had signed a ten-year agreement with
the government of Mexico-owned Mexico Bank for Foreign Trade (Bancomext)
and Republic of Cuba government-operated UEC (Cement Producers Association
of the Republic of Cuba) to provide technical assistance at their jointly-owned
cement plant located in Mariel, constructed by the government of the Republic
of Cuba in the 1970’s. In 1994, Bancomext had received a 50% interest
in the cement plant in a swap for debt owed to Mexico by the government
of the Republic of Cuba. The ten-year agreement had provided Cemex
SA de CV. exclusive rights to export the cement and clinker produced by
the five other Republic of Cuba government-operated cement plants located
in the Republic of Cuba. In 1996, Cemex SA de CV. “officially” ceased
activities within the Republic of Cuba. Republic of Cuba cement
production:
REEBOK PROVIDES CLOTHING TO NEBRASKA SOCCER TEAM VISITING CUBA- Stoughton, Massachusetts-based Reebok International Ltd. (1998 revenues exceeded US$3 billion) provided soccer jerseys to the 21-member Gold Nemesis soccer team from Lincoln, Nebraska, for their August visit to the Republic of Cuba. This is the first occurrence of a United States-based global consumer products company specifically providing products with an identifying logo for distribution within the Republic of Cuba in conjunction with an event licensed by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington. D.C. The Gold Nemesis soccer team is the under-17 years-of-age four-time Nebraska state champion. The Reebok soccer jerseys were presented to the members of the high school-level soccer teams from the Republic of Cuba. The Gold Nemesis soccer team had written a letter to Reebok International Ltd. to request soccer jerseys specifically for the visit to the Republic of Cuba. The first occurrence of a United States-based global consumer-based company being |